One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (October 2013)
34 slides from One Liberty Properties's investor presentation, October 2013
Slide 1: One Liberty Properties
One Liberty Properties October 2013 onelibertyproperties.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain information contained in this presentation, together with other statements and information publicly disseminated by One Liberty Properties, Inc. (the “Company”), constitute forward looking statements within the meaning of Section 27A of Securities Act of 1933, as amendi
Slide 3: One Liberty Overview
One Liberty Overview Single tenant net lease REIT traded on NYSE under the symbol “OLP” Fundamental focus on long-term real estate underwriting Opportunistic acquisition and disposition history Disciplined investment approach with predictable lease revenue to support dividend Experienced m
Slide 4: Financial Highlights
Financial Highlights Stock Price as of 10/4/13: $20.24 52 Week High/Low: $17.52 - $27.74 Shares Outstanding: 15.6 Million Dividend Yield (1): 6.92% Current Market Cap: $316 million Total Enterprise Value (2): $623.1 million Contractual Rental Income 10/1/13 – 9/30/14 (3): $52.9 million Number of Pro
Slide 5: Management Team
Management Team Chairman of the Board since June 2013 and Vice Chairman from 2011 through June 2013. Matthew J. Gould President and Chief Executive Officer from 1989 to 1999 and Senior Vice President from 1999 to 2011 Chairman Senior Vice President of BRT Realty Trust (NYSE: BRT) since 1993 and
Slide 6: Diverse Tenant Base
Diverse Tenant Base Top Tenants Percent of Contractual Tenant Rental Income S&P Credit Rating (1) Haverty Furniture Companies, Inc. (NYSE: HVT) 8.6% Not Rated LA Fitness International, LLC 5.4% Not Rated Office Depot, Inc. (NYSE: ODP) 5.3% B-, Outlook Stable Northern Tool & Equipment Company Inc. 5.
Slide 7: Diversified Geographic Footprint
Diversified Geographic Footprint Portfolio with JV’s spans 107 properties in 29 states (6.6 million square feet) Approximate Wholly-Owned Number of Contractual Rental Building Square Properties Properties Income Feet Texas 12 $6,648,945 532,784 New York 9 $5,557,051 445,879 New Jersey 4 $5,162,705
Slide 8: Properties By Sector
Properties By Sector (Excluding JV Properties) Percentage of Contractual Type of Property Rental Income Retail 56.7% Industrial 17.9% Flex 7.0% Office 6.4% Health & Fitness 6.0% Other 6.0% 100.0% 8
Slide 9: Stable Financial Performance
Stable Financial Performance Consistent payment of dividend High-quality portfolio proven to be highly stable through the recent recession (1) Q4 2013 dividend has not been declared. This table assumes that the 4th quarter dividend in 2013 will equal $0.35 per share, the dividend declared in eac
Slide 10: Solid Financial Position
Solid Financial Position Gross Assets (1): $660.2 million Total Debt/Gross Assets (2): 47% Debt Service Coverage Ratio 2012 (3): 2.21 2013 – 6 months: 2.31 Fixed Charge Coverage Ratio 2012 (3): 2.86 2013 – 6 months: 2.27 FFO Payout 2012: 83% 2013 – 6 months: 88% Return on Assets 6/30/12 – 6 months (
Slide 11: FFO & AFFO
FFO & AFFO (1) A reconciliation of FFO per share and AFFO per share to net income per share, as determined in accordance with GAAP, may be found at the end of this presentation. FFO, AFFO and the weighted average diluted shares outstanding for 2013 is for the six months ended 6/30/13. 11
Slide 12: Strong Balance Sheet
Strong Balance Sheet Liquidity available to acquire in excess of $150 million of properties $51.5 million available on a $75 million Line of Credit as of October 4, 2013 98% of the mortgages payable are fixed rate (weighted average of 5.2%) and non- recourse There is approximately $7.8 milli
Slide 13: Manageable Lease Expirations
Manageable Lease Expirations Approximate Square Contractual Rental % of Contractual Rental % of Square Feet 12 Months Ending Number of Expiring Feet Subject To Income Under Expiring Income Represented by Represented by September 30, Leases Expiring Leases Leases Expiring Leases Expiring Leases 2014
Slide 14: Acquisition Criteria
Acquisition Criteria We pay special attention to the quality of the real estate in our acquisition activity Investment Size: $2,500,000 minimum with no maximum Investment Type: We consider a variety of net-leased properties including industrial, warehouse, manufacturing, retail and restaurants
Slide 15: Solid Acquisition Track Record
Solid Acquisition Track Record Acquired $101.5 million properties to date in 2013 Current pipeline of diverse opportunities in excess of $250 million (1) Total Revenue in 2013 is for the six months ended 6/30/13 (2) Acquisitions for 2013 are as of 9/30/13 15
Slide 16: 2013 Acquisitions
2013 Acquisitions • Northern Tool and Equipment distribution center in Fort Mill, SC for $39.2 million and financed with debt of $27.3 million • FedEx Express distribution center in Indianapolis, IN for $9.3 million, all cash • Joe's Crab Shack restaurant in Ann Arbor, MI for $3.0 million, all cash
Slide 17: Appendix
Appendix
Slide 18: Acquisition Case Study – Flex
Acquisition Case Study – Flex Acquired a production & distribution facility Purchase Price $15,500,000 in Fort Mill, SC in July 2013 net leased to Mortgage ($9,300,000) Shutterfly, Inc. (NYSE: SLFY) Net Equity Invested $6,200,000 14 miles from downtown Charlotte Annual Rental Income (straight li
Slide 19: Acquisition Case Study – Retail
Acquisition Case Study – Retail Below represents the purchase price and yields for the venture A 90% OLP controlled joint venture acquired a Kmart retail store in Purchase Price $4,640,000 Mortgage – Post Closing ($2,552,000) Clemmons, NC in March 2013 net leased Net Equity Invested $2,088,000 to
Slide 20: Acquisition Case Study – Industrial
Acquisition Case Study – Industrial Acquired a distribution facility in Fort Mill, SC in September 2013 net leased to Purchase Price $39,195,000 Mortgage ($27,300,000) Northern Tool & Equipment Company, Inc. Net Equity Invested $11,895,000 (S&P rated B+) Annual Rental Income (straight lined) $2,95
Slide 21: Top Tenants Profiles
Top Tenants Profiles
Slide 22: Havertys Furniture – Tenant Profile
Havertys Furniture – Tenant Profile Tenant: Haverty Furniture Companies, Inc. (NYSE: HVT) 11 properties aggregating 612,130 square feet Largest tenant representing 8.6% of contractual rental – Duluth (Atlanta), GA income – Fayetteville (Atlanta), GA Full service home furnishings retailer fou
Slide 23: Havertys – Cedar Park (Austin), TX
Havertys – Cedar Park (Austin), TX Building: 50,810 SF on 5.27 acres. Built in 2001. Havertys has operated at this location for more than 9 years. 3 Mile Demographics (Source: Sites USA, 2013) – Population: 85,503 – Average HH Income: $82,293 Location: 11091 Pecan Park Blvd, Cedar Park (Austin
Slide 24: Havertys – Richmond, VA
Havertys – Richmond, VA Building: 38,788 SF on 2.16 acres. Built in 1979 and renovated and expanded in 2001. Havertys has operated at this location for more than 9 years. 3 Mile Demographics (Source: Sites USA, 2013) – Population: 55,806 – Average HH Income: $98,991 Location: 11501 Midlothian
Slide 25: LA Fitness – Tenant Profile
LA Fitness – Tenant Profile LA Fitness – Secaucus, NJ Tenant: LA Fitness International Building: 44,863 SF on 1.229 acres.. Second largest tenant representing 5.4% of contractual rental income. 3 Mile Demographics (Source: Sites USA 2013) LA Fitness currently operates over 500 clubs in 21
Slide 26: Office Depot – Tenant Profile
Office Depot – Tenant Profile Tenant: Office Depot, Inc. (NYSE: ODP) 7 properties representing 183,000 square feet Third largest tenant representing 5.3% of contractual rental City, State: % of contractual rental income income. – Chicago, IL: 1.1% Leading global provider of office products a
Slide 27: Office Depot – Chicago, IL
Office Depot – Chicago, IL Building: 23,939 SF on 2.62 acres. Built in 1994. Office Depot has operated at this location for more than 16 years. 3 Mile Demographics (Source: The Nielsen Company, 2010) – Population: 577,482 – Average HH Income: $83,713 Location: 2928 N. Ashland Ave, Chicago, IL;
Slide 28: Northern Tool – Fort Mill, SC
Northern Tool – Fort Mill, SC Tenant: Northern Tool & Equipment, Inc. – 4th largest tenant representing 5.0% of contractual rental income – A large United States distributor of industrial grade and personal use power tools and equipment – Recently acquired The Sportsman’s Guide and The Golf Wareho
Slide 29: Ferguson Enterprises – Baltimore, MD
Ferguson Enterprises – Baltimore, MD Tenant: Ferguson Enterprises, Inc. – 5th largest tenant representing 4.7% of contractual rental income – A large United States distributor of plumbing supplies, pipes, valves and fittings Lease expires 3/31/2022 Debt: $21.6 million, which effectively mature
Slide 30: DSM Nutritional – Parsippany, NJ
DSM Nutritional – Parsippany, NJ Tenant: DSM Nutritional Products, Inc. – 6th largest tenant representing 4.2% of contractual rental income – Worldwide leading supplier of vitamins, carotenoids and other fine chemicals to the feed, food, pharmaceutical and personal care industries – Lease guarante
Slide 31: Portfolio Of Properties By State
Portfolio Of Properties By State (1) 107 Properties in 29 States (As of September 30, 2013) -- Properties 1-36 (CO-LA) Square Square Name or Tenant/d.b.a. City State Feet Name or Tenant/d.b.a. City State Feet Greenwood Dollar General, Citi Trends and Rugged 1 The Sports Authority, Inc. Village CO 45
Slide 32: Portfolio Of Properties By State
Portfolio Of Properties By State (1) 107 Properties in 29 States (As of September 30, 2013) -- Properties 37-72 (ME-OH) Square Square Name or Tenant/d.b.a. City State Feet Name or Tenant/d.b.a. City State Feet 37 Huttig Building Products, Inc. Saco ME 91,400 55 DSM Nutritional Products Inc. Parsippa
Slide 33: Portfolio Of Properties By State
Portfolio Of Properties By State (1) 107 Properties in 29 States (As of September 30, 2013) -- Properties 73-107 (OH-WI) Square Square Name or Tenant/d.b.a. City State Feet Name or Tenant/d.b.a. City State Feet Austin (Cedar 73 L.A. Fitness International, LlC, Hamilton OH 38,000 91 Havertys Furnitur
Slide 34: GAAP Reconciliation
GAAP Reconciliation The table below provides a reconciliation of net income per common share (on a diluted basis) in accordance with GAAP to FFO and AFFO Six months ending 2012 June 30, 2013 2011 2010 Net income $ .73 $2.16 $ .96 $ .81 Add: depreciation of properties .35 .66 .66 .75 Add: our share o
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